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SAP Supplier Relationship Management SRM


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SAP Supplier Relationship Management (SRM) enhances the procure to pay process for customers running the SAP ERP system.

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Published in: Business

SAP Supplier Relationship Management SRM

  1. 1. Supplier Relationship Management (SRM) Functionality in SAP Business All-in-One Executive Summary
  2. 2. Procurement Organization Continues to Gain in Strategic Importance Procurement organization aspires Business has pressure to to increase purchasing power Percentage of all authorized spending goes through procurement process  Control spiraling purchasing costs  Minimize sourcing and purchasing Not Fulfill By inefficiencies Procurement Process Fulfilled By  Enforce contract compliance 51% Procurement Process  Automate supplier collaboration 49% Source: Technology Buyer Insight Survey, Forrester Research (Feb 2010) Business Priorities Goals  Ensuring lean, compliant  Improving operational execution procurement operations and savings realization  Gaining efficiency and savings  Closing the loop with suppliers, users through integrated processes and finance  Minimizing purchasing complexities  Delivering easy-to-use procure-to-pay solution © SAP AG 2010. All rights reserved. / Page 2
  3. 3. Out of Control Procure-to-Pay Processes Are Contributing to High Costs Operational Issues:  Maverick buying and disparate purchasing practices limits purchasing power  Ineffective purchasing policy compliance  Slow, error-prone, and inefficient procurement operations  Lack of visibility of purchasing transactions leading to spiraling costs  Inability of purchasing professionals to focus on strategic sourcing, supplier negotiation and other activities that generate business value © SAP AG 2010. All rights reserved. / Page 3
  4. 4. Only SAP Delivers Integrated End-to-End Solutions for Midsize Companies SRM SRM ERP ERP Supplier Create Accounts Payable Self-Service Sourcing with and Process Invoice Procurement RFQ Purchase Order Processing Key advantages of SRM functionality in SAP Business All-in-One  Tight integration with the SAP ERP application in SAP Business All-in-One  Best-in-class functionality for supplier relationship management  Intuitive, user-friendly design for quick adoption with minimal training  Experienced, qualified partners who can provide a quick, cost-effective deployment  Attractively priced for mid-size companies © SAP AG 2010. All rights reserved. / Page 4
  5. 5. Streamline Self-service Procure-to-Pay Processes with Automation and Workflow Strategic Sourcing Self-service Approve purchase Issue Request for Issue Request for Procurement for with Requests requisition Quotation (RFQ) Quotation (RFQ) Quotation Confirm participation Confirm participation Request goods viavia Request goods self- and submit quotation / and submit quotation / purchase requisition service procurement bidbid response response Supplier Access and browse Select quotation / / Select quotation Select quotation/bid winner from online catalogs Manager bid winner bid winner Operational Purchaser Generate operational reporting and analyze Create , process and key performance monitor purchase order metrics Employee Finance Automate matching Process accounts of invoice to SRM payable invoice purchase order ERP © SAP AG 2010. All rights reserved. / Page 5
  6. 6. The Benefit: Deliver Value by Maximizing Savings, Compliance, and Efficiency Benefits of Self-Service Procurement and Supplier Sourcing with Request For Quote (RFQ): ■ Lower inventory and carrying costs by having less on-hand inventory ■ Free up staff to focus on strategic issues such as negotiating lower prices with suppliers ■ Enforce employee level compliance and standardize procurement processes company- wide ■ Reduce the complexity and time of the procure- to-pay cycle by integrating all related activities ■ Increase effectiveness with centralized sourcing ■ Increase transaction effectiveness with supplier connectivity and collaboration © SAP AG 2010. All rights reserved. / Page 7
  7. 7. The SAP Advantage: Best-in-Class Functionality for Supplier Relationship Management Included in SRM functionality for SAP Business All-in-One Part of SAP SRM 7.0 [can be added; additional licensing may be required] Purchasing Global Spend Analysis Category Management Compliance Management Governance Sourcing Bid Evaluation Central Sourcing Hub RFx/Auctioning and Awarding SAP NetWeaver Contract Management Legal Contract Contract Authoring Contract Negotiation Contract Execution Contract Monitoring Repository Collaborative Direct / Plan-Driven Catalog Content Self-Service Procurement Services Procurement Procurement Procurement Management Supplier Direct Document Exchange Supplier Network Web-based Supplier Interaction Collaboration Supply Base Supplier Identification Supplier Development and Supplier Portfolio Management Management and Onboarding Performance Management The SRM Functionality in SAP Business All-in-One is based on SAP SRM 7.0, so you can:  Leverage the latest innovations in SAP’s market leading SAP SRM product  Start with the most relevant processes for your company and expand easily as needed  Scalable architecture enables growth from 10 to 1,000-plus users  Work within your budget—the solution is priced affordably for midsize companies © SAP AG 2010. All rights reserved. / Page 8
  8. 8. SAP Supplier Relationship Management Delivering a unified procure-to-pay solution Empower Your Team Increase Effectiveness Attain Excellence  Enable employees to  Enable adoption with intuitive  Achieve company-wide manage their own requisitions and interactive user interface purchase compliance to reduce costs and gain  Automate routing and  Foster collaboration across economies of scale approval of requisition your supplier network requests and purchase orders  Extend full business value  Reduce complexity with by integrating procurement  Conduct centralized sourcing orchestrated workflow and processes with SAP ERP to find the best source of improved visibility supply  Adapt quickly as your purchasing needs change and new requirements arise © SAP AG 2010. All rights reserved. / Page 9
  9. 9. Many Customers Are Seeing the Benefits of SAP Supplier Relationship Management Solution Reduce Costs  Up to 20% reduction in cost in most major spend categories  60% - 70% savings via automated bid process  Up to 10% reduction in inventory carrying costs Reduce Cycle Time  Up to 75% reduction in purchase order process cycle time  50% improvement in RFQ process cycle time  Reduce purchase cycle time from 10 to 2 days Increase Effectiveness  Up to 40% of procurement transactions conducted via electronic bidding  Up to 80% increase in supplier compliance  20% reduction in special request POs © SAP AG 2010. All rights reserved. / Page 10
  10. 10. Key Take-Aways Business Benefits  Optimize procurement and sourcing  Ensure compliance through transparency  Manage suppliers for competitive advantage Maximize procurement process Product Capabilities effiectiveness  Designed specifically for midsize companies  Pre-configured support for self-service procurement and supplier sourcing  State-of-the-art Web UI Quick return on investment Implementation Services  Experienced, qualified partners  Quick, cost-effective deployment © SAP AG 2010. All rights reserved. / Page 11
  11. 11. Thank you! © SAP AG 2010. All 12 2009 / Page rights reserved. / Page 12